TK Maxx accused of misleading with discounts

US department store TK Maxx has been accused of misleading shoppers by exaggerating the original retail price on its designer goods to make consumers believe they are making a bigger saving than they actually are.

TK Maxx offers designer items "up to 60pc less" and promises "big labels, small prices", however, the store has been reported to have exaggerated the original retail price on some of its designer items to appear as if it sold for a higher price. The retailer's products are usually advertised with an RRP (Recommended Retail Price) as well as its discounted price - the former of which is often far higher than it should be, the Channel 4 documentary claimed.

In one example, the retailer advertised a coat by luxury fashion brand Rohmir with an RRP of £2,225, yet the designer said the coat originally sold for a much smaller sum of £800.

A Diesel cardigan which the designer company said was sold for £200, was labelled as "RRP £251" in TK Maxx, and a French Connection sweater which it confirmed was originally sold for £85, was labelled as "RRP £115" in TK Maxx.

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TK Maxx responded saying that the RRPs were set after conferring with the seller, and added: "[We] only cite an RRP which has been provided…independently by the third party seller” and that they carry out “random spot checks" to ensure this. It said any mistakes could be "human error".

Government guidelines state that a recommended retail price should not be used "if it differs significantly from the price at which the product is generally sold".

TK Maxx is becoming increasingly popular with British austerity shoppers who are looking for designer labels at the cheapest prices. The American retailer last month said sales were $19.6bn in just nine months, up 8pc on a year earlier.

The Dispatches investigation also claimed that Bicester village - a popular shopping centre in Oxfordshire - advertises 'World-leading brands [which] offer their authentic previous seasons' collections with savings of up to 60%' when in fact some of the clothes stocked there were specifically manufactured to be sold at discount outlet stores, and were therefore of different quality.

Value Retail PLC, the Bicester shops’ landlord, told Dispatches: “We are satisfied that everything sold at Bicester Village is of the highest quality and value for money."

• Dispatches, presented by Telegraph Features Writer Harry Wallop, will be on Channel 4 at 8pm.

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